An blurry image of employees in the office

Employees

Home » Employees » General » Purchase of Service

Purchase of Service

Maternity Leave

A period of maternity leave is not pensionable unless the employee makes contributions for the period.

The application to contribute for a period of maternity leave may be submitted up to 30 days after the end of the leave. If the maternity leave is immediately followed by a period of parental leave, the application may be submitted up to 30 days after the end of the combined leave.

The cost to purchase maternity leave is the employee required contribution rate in effect in the applicable year(s).

Contact your payroll/personnel office for an application form.

Parental/Adoptive Leave

A period of parental or adoptive leave is not pensionable unless the employee makes contributions in respect of that period.

The application to contribute for a period of parental or adoptive leave may be made up to 30 days after the end of the leave.

The cost to purchase parental or adoptive leave is the employee required contribution rate in effect in the applicable year(s) PLUS an equal matching portion.

Contact your payroll/personnel office for an application form.

Special Service Buy Back (SSBB)

Special Service Buy Back (SSBB) allows employees to purchase eligible periods of employment that are not already pensionable and are no longer eligible for purchase under the pension plan’s other service purchase arrangements.

The service must have been with an employer who was and still is participating in the pension plan.

Eligible service includes:

  • Leaves of absence or layoff.
  • Part-time or casual service an employee has with a participating employer of the Fund during which the member did not contribute to the Fund (for example, if the member worked part-time for 0.6000 of a year, the eligible service for buy back would be 0.4000 of a year in order to obtain 1.0000 year of pensionable service).
  • Maternity or parental leave that the member did not purchase in the past.
  • Previous Fund pensionable service that had been refunded to the member.

Periods of contract employment are not eligible for purchase.

You may apply to purchase eligible service at any time prior to termination or retirement.

The cost to purchase this period of service is full actuarial cost based on your salary, age and actuarial assumptions in effect at the date of application. The employee pays the full cost, with no employer funding. View a chart with examples of the costs to purchase SSBB.

See additional information and to print the SSBB Application Form.

Prior Service – Reinstatement

If you previously contributed and have re-entered the Plan, previously accumulated pensionable service can be reinstated if:

  • you did not withdraw or transfer any portion of the pension benefits for that service (see Note);
  • you re-enter the Plan within three years of leaving; and
  • you apply within two years of re-entering the Plan.

Note: If you transferred pension benefits in respect of a prior period because you were required under the Act to do so, you may be eligible to reinstate that service, if you repay any amount refunded plus whatever amount is necessary to reinstate the account. This option is subject to applicable time deadlines.

Contact the Board office to determine if you are eligible to reinstate prior service.

Prior Non-Pensionable Service (PNE)

You can convert non-pensionable service into pensionable service if:

  • the service was with a participating Plan employer and was immediately before the date that pensionable service began;
  • the position held during non-pensionable service would, for an employee in the same position today, require contributions to the Plan;
  • the employment was continuous as defined in the Plan text;
  • you worked at least 1/2 time; AND
  • the service is not prior to a termination (resignation, dismissal, or permanent layoff)

The cost will be based on your salary at the date of application.

Contact your payroll/personnel office for an application form.

Reduced Hours in the Last five Years of Employment

If your employer has approved a reduction in your work frequency from full time to less than full time and you are within five years of being eligible for an unreduced pension, you may elect to contribute to the Fund based on full-time service.

The application to contribute on the full-time service must be made prior to beginning the reduction in service.

The cost to purchase the reduction in service is based on your salary immediately before the reduction in hours takes effect and on the employee required contribution rate in effect in the applicable year(s), PLUS an equal matching portion. The employee pays for the full cost with no employer funding.

Contact your payroll/personnel office for an application form.

Workers’ Compensation Benefits (WCB)

If you have been awarded compensation under The Workers Compensation Act for a temporary total disability caused by an “at work” accident you have the option of contributing to the pension plan in respect of the time you receive WCB benefits.

If you elect within two months of the date of the WCB award, you would contribute on the salary rate  immediately prior to the accident plus increments (if eligible) based on the required contribution rate in effect in the applicable year(s).

If you elect at any time before the expiration of 18 months after the end of the period during which WCB benefits were paid, the cost will be based on your annual salary at the date of application and will be twice the contribution rate in effect for earnings over the YMPE maximum.

Contact your payroll/personnel office for an application form.

On Loan or Educational Leave

You can choose to do the following within two months of your Leave, depending on your situation:

On Loan or Educational Leave without Salary or on an Allowance

You may elect to accumulate pensionable service by paying twice the employee contributions based on the full salary you were receiving before the leave began or on the allowance received during the leave.

On Loan or Educational Leave with Part Salary

You must (if on Loan), or may (if on Educational Leave), make employee contributions based on part salary. You can also elect to pay twice the employee contributions based on the balance of your full salary before the leave began to maintain pensionable service.

On Loan or Educational Leave with Full Salary

You must (if on Loan), or may (if on Educational Leave), pay employee contributions on your full salary.

You can also make a late choice within 18 months of returning from a period of educational leave, however, the contribution rate will be higher. Your payroll/personnel office or the Board office can provide you with more information.

Canadian Forces Reserves

An employee may purchase the service for a period of unpaid leave received under section 59.5 of The Employment Standards Code (unpaid leave for a reservist).

You must file the application form within six months after the end of the period of leave.

The cost to purchase this period of service is based on the employee required contribution rate and on your annual salary immediately prior to the leave.

Deferred Salary Leave

If an employee is permitted by the employer to defer salary so that this salary is paid during a period of a leave of absence, the deferred salary paid is NOT pensionable earnings and contributions cannot be deducted from these earnings. Employees will not accumulate service during this period of leave.